With a long leasehold premises in Blackley, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Blackley with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has below eighty years left, under the current legislation the landlord can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Blackley with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Blackley can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Blackley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a studio apartment in Blackley on the market with a lease of just over 61 years unexpired. Ethan informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Winter we were contacted by Ms Natalie Johnson , who owned a one bedroom apartment in Blackley in May 2006. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Blackley with 100 year plus lease were worth £173,800. The average amount of ground rent was £65 invoiced monthly. The lease ended on 27 September 2081. Considering the 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2010 we were phoned by Dr Louise Campbell who, having completed a one bedroom apartment in Blackley in September 1996. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative flats in Blackley with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 2 October 2092. Taking into account 66 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.